Is your rental home sitting vacant? See what we recommended to this home owner to get it rented.
Clint Collins response: To Julie,
I would review the price, presentation, and exposure. If she emails me the stats on that home I will send her a comparable report for the homes we have in that area and similar. (firstname.lastname@example.org) See below:
If a property is not rented within 30 days it is typically due to price, presentation, and/or exposure. All 3 of these should be reviewed weekly while listing a vacant property:
Price: Develop a rental price based on comparable properties in the current market with a goal of having it rented within 30 days or sooner. Track the number of calls, showings, and applications for each vacant property. Lots of calls but no showings is a great indicator that the price is high if the price is not listed in your marketing. With this data we are able to adjust the price as needed.
Presentation: We will make recommendations based on our experience, and feedback from showings. If the property needs more cleaning the do it. Cleaning is more effective than most other move-in incentives. If there are other improvements that would help with presentation then weigh out the cost and determine what could be done. If the property is getting a lot of showings and no apps then it is most likely a presentation issue.
Exposure: Give your vacant properties maximum exposure through a full marketing program. This includes websites, local media, tenant referral program, yard signs, and local top ranking websites. More exposure gives you more options for screening for good tenants, less time vacant, and increased rental income. Use lots of pictures and even video tours so the showings you get are more interested and you waste less time. If you are not getting traffic on the property it is most likely an exposure issue.
If you visit the property weekly and review these 3 factors and make regular adjustments, your property won’t be vacant for long.
More feedback from Jake:
I would re-iterate Clint’s approach.
1. Ask yourself: how many phone calls have you received? How many showings? Applications? (Indicates Exposure)
2. What are 5 things you can do to improve Presentation? Examples can include changing burnt out bulbs, cleaning windows, trimming some bushes, addressing any odor, etc.
3. Price: Keep checking those comparables. Objectively compare property benefits/drawbacks with comparables. Sometimes drawbacks are difficult to notice such as cleanliness of neighborhood. It sounds like your exposure is good. If the place is looking good it may be time for another price reduction.
Jake, could you forward to members?
This has been advertised for about 3 months. Did 1 month in post register, photo ad. plus craigslist the whole time trying to remember to renew every 2 days. Competition looked really stiff this summer, lots of homes for rent. It looked like rents had come down, just looking at the ads. Started at $1100 which was what I was getting for years. 3 bed 2 bath newer home in Cortland Ridge by Crowley and 45th S. 1200 sf, living room is really small, so limits possible tenants. Lowered to $1070. I had 2 other homes turn over during this time. One in a few days, the other in about a week. Do you guys have any suggestions? I know it has to come down to rent. What do you guys think? Is it overpriced or something else?
craigslist ad: http://eastidaho.craigslist.org/apa/3249588768.html.